St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1887-11-01
Banks of st. Paul Will Loan
the Third National Enough
to Square Depositors.
The Amount Was Just One
Hundred and Twenty-Five
Thousand Dollars.
No Run on the Bank, and De-
positors Generally Are g
Not Alarmed. u
Bankers Say There Will Be No
Serious Results to the If
Business World.

''Daily GLOBE! All about the failure
of the Third National bankr
Such was the startling cry heralded
upon the streets yesterday morning in
the shrill singsOng voice of the news
boy.
Persons on their way to business gaZed
hard and incredulously at the diminu-
tive news vendors, only to find the re-
port confirmed ON picking up their
GLOBE.
The exhaustive statement of the banks
intention to go into liquidation, as pub
lished exclusively in the GLOBE, caused
no little surprise throughout the city,
and all day long it was the principal
topic of conversation in business circles.
The statement that the bank was per-
fectly solvent served to prevent heavy.
disastrous run on the institution, al
though the officials were kept busy dur
ing banking hours in paying dep0sitOrS
the amounts due them. DepoSitorS.
though slightly anxious. were quiet. and
many did not draw ont their money I'M
til late i'll the afternoon, while great
proportion did not draw at all. An eX-
animation developed the fact that the
bank was short just S125,000. ". X.
Merriam, president of the Merchants
National bank and Staunch friend of
the Third, at once took active measures
to help the bank out of its difficulty.
a SYNDICATE FORMED.
A syndicate was Immediately formed
of the national banks of the city and the
$125,0 furnished. and every depositor
was. or will be. paid in full. This is
practically all the news there is in the
matter. A GLOBE reporter called upon
Mr.. Merriam, who said:
There is no occasion for any excite
ment, and the less said about the matter
the better. The bank mas simply Thought
it best to cease business. and as there is
plenty of money to pay the depOSit0rs,
what more need the public know? Yes,
we formed a syndicate, furnished the
necessary Sl25,000, and were glad to do
so. We did not wish the deplOrable
news to be scattered abroad that a ST.
Paul bank had failed. Mr.. Mann is an
admirable person to do business WITH,
and whatever he tells you is true"
WHAT MIR. MANN SAYS.
The reporter called at the Third Ma
tional and was courteously received by
Mr.. Mann.
You are the gentleman who called to
see me last night? We'll. wish to apol-
ogiZe to you. l did not mean to be rude.
| was weak from the loss of sleep. and
could scarcely get to Sleep. L needed
the rest badly from which you awakened
me. / really cannot see what more you
wish, as the GLOBE contained all the
news there is in it. 1t was a very eX-5
haustiye report. | cannot give you any
statements, and really do not know how
much we have paid out. We have
plenty of money TO pay the dep0sitors,,
and cannot give any tabled statement.
until it is made out" 80
Both he and Mr.. Slower, the cashier,
were nervous, and looked rather carer
worn. When Mr.. Mann handed the
cashier a number of letters addressed.
cashier, Third National Bank" MIR
Slower gazed at them in vague sort Of.
way and allowed them to, lie untouched
on his desk. Ia
WHAT OTHER BANKERS SAY. 1D
From here the reporter called on q
number of bankers. who had the fol-
lowing to say:
Albert Scheffer President Commercial
NATIONAL do not care to express an Opin-
ion. They are brother bankers and | have
no license 10 say anything. 1t will not affect
us in the least. 4 gentleman who had S10,-
900 stock seemed anxious to sell at 33 cents
on the dollar. If he based this action on what
he knew, it looks rather bad.
Gustav Willius, President of the German
American National Bank will say nothing
except that it very unfortunate affair. 1t
will affect us only in bringing us new Gus
TONER'S and we have quite number already.
The bank aid not do business enough to
affect the banking business.
E II. Bailey. Cashier First National-It is
certainly an unfortunate affair. 1t will not
however affect the other banking inStitII-
tons. There is not the slightest cause for UNI
easnesS, as the city finances Will not be af-
fected i'll the least Of course, business
houses will suffer in not having their accom-
modatiOns continued. IL would look as
though the retirement were caused by bad
management.
William BIcRel, Cashier Germallia Bank
If the syndicate has been formed to loan the
Third National what money it needs the re-
suit will not be serious of course. the good
name of the bank was at stake and the ma
tlOnal bankers are doing the proper thing II
helping tide over the unfortunate condition.
/ would do the same thing if a state bank
were in similar position. Several of the
Third Nationals depositors have asked me
to-day whether they shuold draw ont their
money. They were small depositnrs and
men who get alarmed when there is no cause
for il. do not think the heavier business
men have been touching their deposits there.
] advised those who came to me that if the
bank had ever been friendly to them in the
way of giving loans, when they were hard
up TO reciprocate the favor and not press
the bank now, and / know that some of them
did so.
The deposits of the Third were lit
tie less than 1925, 900 and will all bepaid
promptly on demand. a greater por-
ton of it has been paid already. AS in
the words of Mr.. Merriam: The di-
rectOrS think it best 10 go out of bust
ness. They simply pay up their in
debtedness and stop business. That's
alI thpra iS Of II -